Raffles/Auctions

[KD5NM]

Is it legal to have a silent auction in conjunction with a Lodge Fundraising activity? If so would the raffle rules apply? Could the proceeds be used toward the Lodge general funds or do they have to be for a specific charity?

 

[owls84]

I have not heard of the silent auctions but I do know there are VERY stringent rules on raffles. If I remember correctly, which you need to double check, you may have two raffles a year and the money made must be CLEARY represented and can not go to a general fund. There is more but I am not that clear since we don't do them. I know this is also IRS or state law driven not GL driven.

Great questions thanks for asking I look forward to the responses.

 

[scottmh59]

good question

 

[Bill Lins]

I think they are two separate activities and, as such, auctions are not subject to the same rules as are raffles.

 

[owls84]

Brother Bill, Do you know the rules on the Raffles? I just want to make sure I didn't lead him astray.

 

[KD5NM]

The GL has put out some pretty clear information pertaining to RAFFLES, what has not been addressed to my knowledge is if a silent auction falls under the same rules. It seems to me that a raffle is like a game of chance where you have a drawing. An auction is really just the act of selling something to the highest bidder. Am I right?

 

[Gerald.Harris]

The GL has put out some pretty clear information pertaining to RAFFLES, what has not been addressed to my knowledge is if a silent auction falls under the same rules. It seems to me that a raffle is like a game of chance where you have a drawing. An auction is really just the act of selling something to the highest bidder. Am I right?

I believe you are right. If you are holding a silent auction, then the people who participate know what the item is that they are bidding on. There is no chance involved in this type of fundraiser.

 

[Bill Lins]

Brother Bill, Do you know the rules on the Raffles?

Here's a summary from Ch. 2002 of the Texas Occupations Code:

2 raffles per calendar year- may NOT overlap

All proceeds from ticket sales MUST go to charity

No paid (TV, radio, newspaper) advertising

No statewide raffles or offers to sell tickets to a statewide raffle

Those organizing or conducting raffles or selling or offering tickets to raffles CANNOT be compensated for such work

Only members of the organization conducting a raffle can sell tickets for it

Each raffle ticket must contain the following information:
Name of the organization conducting the raffle & its address or the address
of a named officer; the ticket price; and a general description of each prize
having a value of more than $10.00

NO monetary prizes, prizes worth more than $50,000.00, or lottery tickets

The conducting organization must either have possession of the prize(s) or post a bond with the county clerk of the county in which the raffle is being held.

Hope this helps.